Bescom is advocating for a tariff hike of 49 paise per unit

Power tariff hike proposal by Bescom submitted to KERC

Power tariff hike attributed to augmented power purchase costs

Bangalore Electricity Supply Company (Bescom) is advocating for a tariff hike of 49 paise per unit across all consumer categories in the upcoming financial year, 2024–2025. This move, outlined in the tariff proposal recently submitted to the Karnataka Electricity Regulatory Commission (KERC), may translate into higher electricity bills for Bescom customers.

The impetus behind this proposed tariff adjustment is attributed to augmented power purchase costs, which have soared to an estimated ₹28,863 crore. A key factor influencing this surge is the prevailing drought situation in the state, amplifying power procurement expenses. Notably, Bescom underscores another substantial contributor to the escalating costs—the intricate process of importing and blending coal for thermal power production.

To offset the mounting financial strain, Bescom is not only advocating for an increased per-unit charge but is also proposing a shift in the tariff structure. The proposal suggests a higher recovery of tariffs through fixed charges, while concurrently reducing the variable energy charges. This strategic realignment aims to address the revenue shortfall and stabilize the financial landscape for the power utility.

If approved by the regulatory commission, these proposed adjustments may impact consumers by elevating their electricity expenses, reflecting the ongoing challenges in the energy sector and the measures taken to navigate them.